Safe and Sound

INDEPENDENCE

INDEPENDENCE, MO
1
Star Rating
INDEPENDENCE is an NCUA-insured credit union founded in 1963 and currently based in INDEPENDENCE, MO. As of December 31, 2017, the credit union had assets of $3.0 million.

Members have $1.9 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.9 million. INDEPENDENCE's 535 members currently have $2.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INDEPENDENCE exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is important. When looking at safety and soundness, more capital is better.

INDEPENDENCE fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 8 out of a possible 30 points.

INDEPENDENCE had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

INDEPENDENCE finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 16 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

INDEPENDENCE received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.